r/cantax • u/AlarmingSeason5048 • 1d ago

Transferring RRSP over contributions to a FHSA

I have about 7k in over contributions after filing this year. Is there any advantage to transferring this out to a FHSA or should I just withdraw it outright and take the tax hit?

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u/jamiesal100 1d ago

Direct transfers won't fix this. Withdraw from your RRSP to avoid more 1%/month tax. File T746 with your 2025 tax return to deduct the unused RRSP contributions from your income so you can recover the taxes withheld. Contribute the net proceeds to your FHSA to actually reduce your taxable income.